The staffing industry is very much affected by the vagaries of the economy, and 2009 will be a particularly tough year companies are laying off their contract and fulltime employees and closing branches to cut costs. One would think that now is not the time for staffing firms to go about making acquisitions and adding girth. According to our research, mergers and acquisitions activity for the staffing industry slowed down to 210 deals by the end of 2008, down from 232 deals in 2007.
Nonetheless, for well-positioned staffing firms, this may be a favorable acquisition opportunity, a chance to acquire smaller, solid companies when valuations are low, in order to strengthen positions either geographically, or in certain verticals, or to gain new customers and to cross sell.
Of late, we have observed a healthy interest in acquisitions in particular, we have received a few calls asking us: Who wants to buy? To help both buyers and sellers, SIA is working on putting together a list of potential acquirers in the staffing industry and will publish this list along with the contact information of the person responsible for M&A within the staffing company. Are you interested in getting on this list? This is a great chance to get in contact with potential sellers. You can do so by filling out our short questionnaire with just five questions by Jan. 23.
If you have any interesting thoughts about the M&A market, feel free to drop me a line at firstname.lastname@example.org.